News Sections
Audio
Governor Wants To Eliminate Business Personal Property Tax
Updated December 19, 2013 7:15 AM | Filed under: Business
 Print    Archive    RSS

(UNDATED) - Governor Pence wants to do away with what he calls an anti-competitive tax, but one analyst says now may not be the time to mess with the state's revenue structure.

The governor wants to do away with Indiana's Business Personal Property Tax, the tax levied on personal equipment that business owners use in the course of doing work for their companies.

Pence says Illinois and Ohio don't have the tax, and Michigan is phasing theirs out, and suggests Indiana could be at a disadvantage when it comes to recruiting companies to the state.

But Pence made the proposal just days before he ordered across-the-board budget cuts for state agencies after tax revenue in November was lower than had been projected.

"I guess I'm arguing that it's time to maybe step back and take a look at our tax and budget policy, and then wait and see what makes sense for the economy long-term," said John Ketzenberger, president of the Indiana Fiscal Policy Institute.

State tax collections are now $141 million below what was projected for the first five months of the budget year, and Ketzenberger says much of that has to do with the economy.

"Indiana is heavily reliant on sales and income tax. More than 80-percent of the revenue the state collects comes from those two sources," another reason, Ketzenberger says, to wait on making any changes to the tax code.

Pence hasn't offered many specifics as to how the revenue from the tax would be replaced, saying he'd like to hear ideas from lawmakers.

Ketzenberger says that's an important question for local governments, who collect business personal property tax revenue. Some of those governments say roughly $500 million in local revenue would disappear if the tax weren't in place, and Ketzenberger says many businesses aren't paying the tax to begin with.



« Previous Article
Next Article »

 Print    Archive    RSS

Have a question or comment about a news story? Send it to comments@wbiw.com

Advertise with 1340 AM WBIW
Advertise with 1340 AM WBIW


1340 AM WBIW, Bedford's Place To Talk. Serving Lawrence and surrounding counties since 1948!

© 2014 Ad-Venture Media, Inc. All Rights Reserved.   WBIW.com and Listen Live Powered by HPC

Advertise  |  Careers  |  About  |  Feedback